Cryptocurrency Adoption Passes Another Milestone Surpassing 100 Million Users

February 26, 2021 Harry DeVries 0 Comments



According to a new study conducted by Crypto.com, the total number of global cryptocurrency users has surpassed 100 million for the first time ever. The study, which measured the cryptocurrency marketplace's size using onchain metrics, survey analysis, and internal data, recorded 106 million cryptocurrency users in January 2021.

Compared to December 2020, the 106 million users represent a 15.7% increase in just one month. What's fueling the growth of the crypto market? According to Crypto.com's research, it comes down to bitcoin adoption momentum.

Eric Anziani, Crypto.com COO had this to say to Bitcoin.com regarding the research's findings:

Our study improves upon previously used methods to find a clear trend of growing cryptocurrency ownership. As more companies and merchants adopt cryptocurrencies as a treasury asset and means of payment, we expect 2021 to be a banner year for crypto mass adoption, bringing us ever closer to our vision of 'Cryptocurrency in Every Wallet'.

Bitcoin smashed through its previous all-time high, pushing its market capitalization past $1 trillion. The growth shows no apparent signs of slowing down either as sentiment around cryptocurrency increases, especially as JP Morgan and BNY Mellon will start offering digital payment methods. Not even two full months into the year yet, investors are piling 10-digit figures into bitcoin. Tesla bought $1.5 billion of bitcoin at the beginning of February, and investment website Motley Fool announced a $5 million investment just a week later.

Bitcoin isn't the only thing that's fueling the demand for cryptocurrency. Several other factors are at play too. Crypto.com's research attributes this rapid ascent to the growth of the decentralized finance (defi) market, the ability to buy, sell, and hold cryptocurrency through Paypal, and the institutional adoption of cryptocurrency are attracting new crypto users every day.

Defi Momentum is Growing
The defi market's momentum is significant given the increased demand for ethereum and other altcoins like Binance's BNB. The total market capitalization of coins locked in defi has grown from $690 million to over $11.7 billion, a significant number that's encouraging new investors to enter the market.

According to Crypto.com's research, ETH's growth rate was higher than BTC in November and December 2020; BTC's unique users grew by 1.5% in November compared to ETH's 2.8% growth. In December, ETH's change was nearly double that of BTC's: 2.8% compared to 1.2%.

How accurate are all of these numbers? A total number of 24 exchanges were included in the research, and while Crypto.com has updated and improved its methodology since its last report, it does admit these figures may be subject to some small caveats.

MoneyGram suspends Ripple relationship over SEC lawsuit

February 26, 2021 Harry DeVries 0 Comments


MoneyGram has suspended its relationship with Ripple Labs, citing the legal uncertainty surrounding the company. In its latest earnings report, the Dallas, Texas-based firm said it would no longer be using Ripple's XRP remittance solution until the payments firm sorts out its legal issues with the U.S. Securities and Exchange Commission (SEC).

MoneyGram partnered with Ripple in January 2018, becoming one of the first payments service providers to pilot Ripple's xRapid solution. xRapid allows companies to transfer funds across borders using XRP without the need for pre-funded nostro accounts.

Three years later, MoneyGram has suspended the service. In its 2020 financial results report, the company stated:

"In addition, the Company is not planning for any benefit from Ripple market development fees in the first quarter. Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple's platform. In the first quarter of 2020, the Company realized a net expense benefit of $12.1 million from Ripple market development fees."

The relationship has been benefitting MoneyGram, with Ripple paying the company to use the XRP token. In Q4 2020, Ripple paid MoneyGram $9.2 million for "market development fees." Altogether, in 2019 and 2020, MoneyGram received $61.5 million from Ripple to continue using XRP.

MoneyGram becomes the latest company to drop Ripple's services following its lawsuit by the SEC. The regulator filed the charges in December, accusing Ripple of selling unregistered securities. Ripple has fought the charges, but this has done little for its clients as well as exchanges which have delisted it in their numbers.

In response to MoneyGram's revelation, Ripple issued a statement claiming the suspension was just temporary. The multi-year contract the two firms signed extends beyond MoneyGram's use of xRapid, Ripple stated.

It added, "We look forward to finding a path forward with MoneyGram and have confidence that there will be more regulatory clarity in the U.S. for the use of digital assets and blockchain technology at the end of this lawsuit – both of which MoneyGram has commented on publicly in the past about the benefits they have witnessed firsthand for their business."

Ripple and the SEC revealed in a recent discovery letter that a settlement is unlikely before the trial. The SEC revealed that Ripple had engaged in settlement talks, but the officials who had been involved had vacated their positions as the Biden administration took over.